This
is a common fake system utility that we have seen on many computers. It
not only claims that your system is damaged in many different ways, but
also hides your important files and breaks Windows Update
functionality. A computer may be infected through fake advertisements
or drive-by-downloads through Java or Flash exploits on infected web
sites. TDSS or ZAccess rootkits have been observed on several systems,
though it is unclear if the infections were related.

Automatic
Start

Windows XP Recovery sets itself to be
part of the boot process, sometimes adding itself as a second shell.

It actively prevents security products
and antivirus tools from running and claims disk damage or virus
infection of most executables on the computer.

Claims
of PC Problems

The
most common fake problems in this tool are intended to scare the user,
claiming that the hard disk is failing.

Advanced
Module

Windows XP Recovery claims that the
ficticious disk errors cannot be repaired and that an 'Advanced Module'
must be purchased.

Scary
Messages

Windows XP Recovery will periodically
pop up error messages like the following, either while 'repairing'
problems or during normal computer operation.